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On Monday, the hair cosmetics company Bezvavlasy bought the Hair Servis group, an important distributor of hairdressing brands on the Czech market. They will pay 530 million crowns for a 100% stake. During the transaction, a total of seven companies were acquired, which will merge into one company called Hair Servis Group next year.
For the purpose of financing the acquisition, Bezvavlasy spent 50 million crowns from its own resources and at the same time obtained a long-term acquisition loan in the amount of 150 million crowns. Another 120 million crowns from the purchase price are then deferred installments over the next six years.
The founders of Hair Servis also receive 300,000 shares of Bezvavlasa at a price of 700 crowns per share as part of the purchase price. Together with the existing majority shareholders Aleš Hudeček and František Novotný and the Starteepo group, they will act in unison, with a total target share of voting rights of 92.3 percent.
For the purpose of financing the acquisition, Bezvavlasy will increase its capital, specifically by 350 thousand shares. This is an increase of 35 percent to the existing one million shares. A total of 300,000 shares will be acquired by new shareholders, and the Starteepo Invest fund has shown interest in the remaining 50,000 shares. Enrollment should take place during next summer.
Bezvavlasa shares are traded on the START market of the Prague Stock Exchange and the RM-System. However, their trading is suspended on Tuesday, precisely because of the publication of the acquisition of Hair Servis. Trading will resume again on Wednesday, December 20.
“The combination of such important players in the field of distribution of hairdressing supplies creates enormous synergies and possibilities. For the year 2023, we estimate that together this group will generate sales of more than 1.1 billion crowns, and at this size, a huge potential for the development of our companies opens up in the coming years,” comments the chairman of the board of Bezvavlasy Aleš Hudeček on the acquisition.
The new Bezvavlasy warehouse in Bor in the Tachovsk region is to be an important tool for the union of the two companies, which will become the central warehouse for the entire group and which will significantly support current and future growth. The company currently generates approximately 66 percent of sales through e-commerce, less than half of which is in the Czech Republic.
Year-on-year sales of the second largest domestic retailer of hair cosmetics grew by almost 44 percent to 495 million crowns. Profit before taxation compared to the same period last year grew by 66 percent to 34 million crowns.
Notino remains the largest online shop for perfumes and cosmetics not only in the Czech Republic, but also in the whole of Europe, whose annual sales are in the tens of billions of crowns. The turnover of the European number one in the last fiscal year, which lasted from last May to this April, exceeded one billion euros, i.e. more than 23 billion crowns. The company did not disclose its net profit, but in the previous year it amounted to 519 million crowns.